“They are losses not written off in the year in which they are incurred but in more than one accounting period”. Identify it
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Deferred Revenue Expenditure
In business, Deferred Revenue Expenditure is an expense which is incurred while accounting period. And the result and benefits of this expenditure are obtained over the multiple years in the future. For example, revenue used for advertisement is deferred revenue expenditure because it will keep showing its benefits over the period of two to three years. Thus, the profit and loss account statement is prepared as a periodic statement. Let us learn more about it in greater detail.
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